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The cryptocurrency analyst and trader Benjamin Cowen warned that the price of Bitcoin (BTC) could drop to $23K, and possibly even below this mark, through the course of the next few weeks. In his analysis, Cowen based his prediction on the performance of BTC during the month of September in previous pre-halving years.
Although September has historically been a bearish month for the cryptocurrency market, the analyst did not rule out the possibility of BTC closing this month off on a positive note. In an attempt to gauge whether the leading cryptocurrency will close this September in the green, Cowen recalled the events of September 2019.
This period was the year before the previous halving event and was a period wherein BTC displayed similar price movement to that of this month. Back then, the first 21 days of September 2019 saw BTC’s price rise more than 4%, only to close the month off below -10%. Subsequently, the analyst warned that history may repeat itself this month.
This bearish scenario seems to have started throughout the past day of trading. The cryptocurrency market tracking website CoinMarketCap indicated that BTC’s price had slipped 0.98% over the past 24 hours. Consequently, the leading cryptocurrency was changing hands at $26,666.78 at press time.
From a technical standpoint, BTC had dropped below the 9 EMA line on its daily chart throughout the previous 24 hours, and continued to trade below this technical indicator. If BTC closes today’s trading session below the 9-day EMA line, then it may be at risk of falling to the support level at $26K in the next 48-72 hours.
On the other hand, a daily candle close above the 9 EMA line today may be followed by BTC flipping the $26,915 resistance level into support. Thereafter, the cryptocurrency’s price could continue to rise to $27,915 in the following week.
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